• EBITDA: Positioned to deliver full-year results near the top end of guidance; record third-quarter EBITDA.
• Debt to EBITDA Ratio: Within target range of 4.5 to 5 times.
• DCF per Share: Expected to be near the midpoint of the range.
• Net Income per Share: $1.19, including the impact of prefunding US gas utilities.
• Secured Capital: On track to place $5 billion into service in 2024; added $7 billion to secured growth program in 2024.
• Gas Distribution: Now the largest natural gas utility in North America, delivering over 9 billion cubic feet per day.
• Renewables: Over 2 gigawatts in development or under construction across the US.
• Dividend Growth: 29 years of growing dividends; expected business growth of 5% annually.
• Capital Allocation: $8 billion to $9 billion of annual growth investment capacity.

• Warning! GuruFocus has detected 10 Warning Signs with ENB.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Enbridge Inc (NYSE:ENB) reported strong third-quarter financial results, with record EBITDA and earnings per share of $1.19.
• The company successfully closed the acquisition of three US gas utilities, enhancing its low-risk business model and returning to an equity self-funded model.
• Enbridge Inc (NYSE:ENB) is on track to place $5 billion of secured capital into service in 2024, supporting its growth strategy.
• The company has added $7 billion to its secured growth program this year, with investments in gas transmission, renewable power, and offshore oil and gas pipelines.
• Enbridge Inc (NYSE:ENB) continues to deliver growing dividends for 29 years, maintaining its status as a dividend aristocrat with a stable and growing dividend yield.

Negative Points

• Hurricane Helene and Milton caused disruptions, although Enbridge Inc (NYSE:ENB) reported limited operational interruptions and no material financial impact.
• The company faces challenges in integrating the newly acquired US gas utilities, which will require continued effort in the coming months.
• Enbridge Inc (NYSE:ENB) is dealing with regulatory challenges, such as the D.C. Circuit vacating the FERC authorization for the Rio Bravo Pipeline project.
• The renewable power segment experienced a decrease in year-over-year earnings due to the absence of development fees, which can be lumpy.
• Enbridge Inc (NYSE:ENB) is navigating a competitive environment in the regional pipeline expansion market, with many competitors and bottlenecks in the system.

Q & A Highlights

Q: Can you provide an update on the mainline expansion potential given the current demand? A: Colin Gruending, Executive Vice President, President - Liquids Pipelines, stated that production is ramping nicely, and the mainline is back in apportionment for November. They have commenced commercial discussions with the industry and are engineering an expansion that is more of an optimization rather than a new path. The early response from the industry is positive, and they are looking at in-service dates in late 2026 or 2027.

Q: How does Enbridge view future growth in the natural gas LDC sector, given its position as the largest in North America? A: Gregory Ebel, President and CEO, mentioned that the focus is on integrating the three recent acquisitions rather than pursuing additional LDCs. Michele Harradence, EVP and President, Gas Distribution and Storage, highlighted strong growth potential due to population growth, modernization programs, and unexpected data center demand, particularly in Utah and North Carolina.

Q: What is the outlook for capital deployment in onshore renewables in the US, and how does it impact EBITDA and DCF per share growth rates? A: Matthew Akman, Executive Vice President - Corporate Strategy & President - Power, noted that Enbridge is capitalizing on high demand from blue-chip corporates, achieving mid-teens returns on solar projects. The projects are immediately accretive and provide stable cash flows, with a strong pipeline of additional projects ready to roll out.

Q: Can you provide an update on potential asset sales to Indigenous Groups? A: Colin Gruending stated that Enbridge is committed to reconciliation and is working on partnerships with Indigenous communities. They are in the early stages of discussions and are excited about the potential for capital recycling through these partnerships.

Q: What is the status of the Rio Bravo Pipeline project following the D.C. Circuit's vacatur of the FERC authorization? A: Cynthia Hansen, Executive Vice President, President - Gas Transmission and Midstream, expressed disappointment but noted that the project is still on track for a 2027 in-service date. Enbridge is supporting ongoing efforts to resolve the legal issues, and there is strong industry support for the project.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.